CASE STUDIES
We respect the privacy of all our clients, after all, you wouldn't want the world to know that you were near bankruptcy. Therefore we provide the following as examples of recent projects to show you what can be accomplished with a good Turn around
plan, hard work and a commitment of
the business owner to survive to fight another day.
*** WHILE EACH BUSINESS IS UNIQUE THE UNDERLYING STRUCTURES ARE THE SAME . . . CASH IS KING!***
TOOL and DIE MAKER:
T&D suffered in the recent recession with declining sales and profits. Their bank called their loan, suppliers threatened lawsuits and declining health sapped the energy of the owner. The CFO painted a rosy and overly optimistic picture of the future. Employees who should have left, stayed while those who should have stayed, left.
DORSET PARTNERS helped negotiate a restructured bank loan, matched employee skills with company needs, recast the financials into believable numbers, acted as an intermediary with vendors, established a short term business plan based on reality, not hope, relieved the owner of much of his stress and within 5 months returned the business to profitability. The key to success was The Plan followed closely by focused implementation.
LUMBER YARD:
DORSET PARTNERS was called in by the bank to liquidate LY. LY had missed payments, lost sales with the downturn in the home building industry, refused to acknowledge reality and had a negative cash balance. LY did however have a profitable division.
Unfortunately LY waited to long to ask for or accept help. Their primary business was sold at auction and the bank satisfied. Fortunately however, DORSET PARTNERS was able to help the owner avoid personal bankruptcy while spinning off the profitable division and giving him a clean-shot at a new start with a profitable business.
MOVING AND STORAGE:
MS like every other moving company saw sales decline as corporate moves dried up and home sales declined. MS cut staff, reduced variable costs, missed loan payments, failed to pay vendors and entered into "the zone of insolvency".
DORSET PARTNERS was called in before the bank called the loans to assess whether the company had a future. A cost accounting procedure was implemented which identified a profitable core business. With support of the owners, a new business plan was approved which purposely focused on the profitable core, reduced sales further and restructured the company. Non-performing assets were sold, bank loans were restructured, vendors were put on a delayed payment plan. After 6 months of emotional stress and hard work, MS is only selling to the profitable segment of their former business, have changed their terms from net 30 to CASH and is generating positive cash-flow. They returned to profitability, sold assets to reduce bank debt and survived.
DISTRIBUTOR:
This distributor was on an amazing growth trajectory in its third year in business. At the same time they were also burning cash and caught up in the excitement of where the company might be heading. Mid way through negotiating a venture capital round, sales fell flat and the secured lender stepped in, demanding an immediate liquidation.
Dorset Parners management was able to bring the business to immediate operating profits and cash sustainability. The company ran profitable and serviced debt for the next 3+ years.
Dorset Parners management was able to bring the business to immediate operating profits and cash sustainability. The company ran profitable and serviced debt for the next 3+ years.
DIRECT MARKETER:
DM was bleeding cash while continuing to build overhead. Their CEO was fired and DORSET PARTNERS was asked to assume an interim CEO role while the Board searched for a permanent replacement. DORSET PARTNERS reduced overhead while at the same time creating a mind set of profitability.
